Govt likely to cut power tariff by Rs 8-10 per unit

ISLAMABAD: Energy Minister Awais Leghari announced that the Pakistan government is targeting a reduction of Rs8-10 per unit in power tariffs following the cancellation of contracts by five independent power producers (IPPs).

The develoopment comes after Prime Minister Shehbaz Sharif revealed that five IPPs had "voluntarily" terminated their power purchase agreements.

Speaking at a press conference after a federal cabinet meeting, Leghari said the government will collaborate with generation companies to lower tariffs.

The high cost of electricity has become a hot-button issue, with opposition parties using it to criticize the government's management of the energy sector and deals with IPPs.

Leghari provided further details, explaining that the government conducted a survey to identify unnecessary power plants. "We initiated discussions with five IPPs and reviewed their agreements, reaching a conclusion through mutual consultation," he said.

The minister highlighted that this decision would offer Rs60 billion in annual relief to consumers and ultimately save Rs411 billion for the national treasury.

He expressed optimism about reducing the power tariff by Rs8-10 per unit in the coming months as part of ongoing efforts to alleviate the financial burden on the public.